The Pakistan Textile Council (PTC) has called on the government to introduce a 10-year fixed-rate financing facility for industrial investment, restore the Final Tax Regime (FTR) for exporters, and abolish advance taxes on the export sector in the upcoming federal budget. PTC Chairman Fawad Anwar stated that these measures are essential to revive investment, strengthen exports, and improve Pakistan's competitiveness in global markets.
Challenges Facing Export Sector
Fawad Anwar highlighted that the export sector continues to face high financing costs, elevated energy tariffs, liquidity constraints, and an increasingly complex tax regime. These factors are discouraging fresh investment and limiting export growth. He emphasized that the upcoming budget presents an opportunity to shift the economy towards investment-led and export-driven growth.
Proposed Policy Framework
Anwar stressed the need for a competitive policy framework, including long-term financing at fixed rates, reinstatement of FTR, and removal of advance taxes. Such measures would provide much-needed certainty to investors and exporters. He noted that industrial projects require long-term financial planning and predictable borrowing costs.
Benefits of Fixed-Rate Financing
According to the PTC chairman, a dedicated financing facility with a fixed markup rate for up to ten years would encourage expansion, technology upgradation, and the establishment of new export-oriented manufacturing units. This would enable businesses to plan effectively and invest in growth.
Tax Simplification for Exporters
Anwar further noted that exporters should not be subjected to multiple advance tax deductions, which adversely affect cash flows and increase the cost of doing business. Restoration of the Final Tax Regime would simplify taxation, improve documentation, and allow exporters to focus on expanding production and exports.
Untapped Export Potential
The PTC stated that Pakistan possesses significant untapped export potential and can benefit from the ongoing reconfiguration of global supply chains. However, realizing this opportunity requires policy measures that reduce the cost of doing business and create a stable environment for investment.
Budget 2026-27 Expectations
“Exports remain Pakistan’s most sustainable source of foreign exchange earnings and job creation. The right budgetary decisions can unlock new investment, increase production capacity, and place the economy on a stronger growth trajectory,” Anwar observed. The Council expressed hope that Budget 2026-27 would include practical, growth-oriented reforms aimed at supporting exporters, attracting investment, and strengthening Pakistan’s position as a competitive manufacturing and export hub.
